PFAN-Asia

SmoThong Biomass: Case Study of PFAN‐Asia’s

Clean Energy Financing Program

ASEAN Renewable Energy Market Development under Energy PriceVolatility

Wednesday June 3rd, 2015

Renewable Energy Asia 2015, BITEC, Bangkok, Thailand

CTI-PFAN has a Worldwide Presence With a

Strong Track Record of Success

• Japan (Chair)

• Norway

• South Korea

• Sweden

• UK

• US (Vice-Chair)

• Austria

• Australia

• Canada

(Vice-Chair)

• Finland

• Germany

CTI-PFAN has assisted +50

projects access +$600 M in clean

energy investments since 2006

Where is CTI-PFAN?

Promotes climate-friendly and

environmentally-sound

technologies through a

private sector focus, working

with business and finance

communities

Acts as an Implementing

Agreement under the IEA in

support of the UN Framework

Convention on Climate

Change

What is CTI-PFAN?

PFAN-Asia 1

CTI PFAN’s business is to mobilize private

sector financing for clean energy business

CTI-PFAN operates to bridge the gap between

INVESTMENT and CLEAN ENEGY BUSINESS

FOR INVESTORS • Access to Investment

Opportunities

• Deal Facilitation and

Match-Making

• Tipping point

assistance

• Capacity Building

FOR DEVELOPERS • Investment Readiness

Assessment

• Strategic Advisory and

mentoring

• Investment Promotion

and Outreach

• Tipping point assistance

• Capacity Building

PFAN-Asia 2

PFAN-Asia’s approach

1. Strengthen the capacity of

a) businesses to develop

high- quality projects and

proposals, and

b) financial institutions to

evaluate clean energy

investment proposals; and

2. Match selected projects with

sources of financing.

PFAN-Asia 3

Asia Forum for Clean Energy Financing

(AFCEF) Business Plan Competition

4

PFAN-Asia

Case Study: Smothong Biomass Project

ASEAN Renewable Energy Market Development under Energy PriceVolatility

June 3rd 2015

Smothong Palm Oil Group, Thailand

• Smothong Palm Oil was established in 2003 to provide

high quality of Crude Palm Oil (CPO) & Palm Kernel Seed

(PKS).

• Smothong Palm Oi Mill #1, commissioned in 2010, is one

of the largest palm oil mills in Thailand with an installed

capacity to produce high quality of crude pam oil at 1,200

tonne/day.

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There are various by-products

from production process.

To create sustainability, we aim

to utilize all materials from the

process to create zero waste.

PFAN-Asia 8

PFAN-Asia 9

PFAN-Asia 10

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Products from Palm Oil Production Process

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Products Utilization

Crude Palm Oil sell

Palm Kernel Seed sell

Fiber To use as fuel in the process

Dry Shell sell

Wet Shell sell

Sludge sell

Palm Oil Mill Effluent

(POME or wastewater)

To generate biogas and then to electricity (4 MW)

Empty Fruit Brunches (EFB) To generate electricity (9.5 MW)

Mit Prasong Green Power

Biogas to Power Project (2MW@2 Units) from POME

Smothong Biomass-to-Power Project

Installed Capacity 9.5 MW (8.0 MW net)

Required Feedstock Empty Fruit Bunch (500-600 ton/day)

Output Electricity sold to Provincial Electrical Authority under

the VSPP program for 25 years

Expected total investment cost 850 m THB (25.5 m USD)

Expected Debt / Equity Ratio 70 / 30

Expected return on investment 20%

Development Status • PPA signed with PEA for 25 yrs with an adder

incentive;

• BOI certificate secured ,Approval from local

municipality;

• Letter of Intend for feed stock supply with

Smothong Palm Oil (250-300 ton/day);

• Land available for 55 rai.

Requirements An external investor is required to provide the equity

and arrange the debt portion of the project.

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PFAN performed Investment Readiness

Assessment on Smothong Biomass Project

Evaluation of Business Fundamentals

1. Value Proposition & Business Model (+ SWOT Analysis)

2. Market Understanding and Analysis

3. Management Team

4. Operations & Implementation Plan

5. Financials

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Investment Readiness Assessment

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Key Stakeholders in Smothong Biomass

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Match-Making with Investor(s)

• After the investment readiness assessment, PFAN-Asia

connected Smothong Biomass with a potential investor;

• PFAN-Asia provided supports in refining financial model

and advising on deal structure until a shareholder

agreement is signed;

• PFAN-Asia is now supporting the project to secure debt

financing from commercial bank(s).

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PFAN-Asia Contact Information

Dan Potash, dpotash@deloitte.com

PFAN-Asia Chief of Party

Boonrod Yaowapruek, thailand@cti-pfan.net

PFAN-Asia Country Manager Thailand

Tanakrit Sudprasert, tanakrite@hotmail.com

Smothong Biomass’s Project Coordinator

For further information, please visit www.cti-pfan.net